PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements
For the Years Ended December 31, 2014 and 2013 Figures are Presented in Millions of Rupiah,unless Otherwise Stated
The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. These valuation techniques maximize the use of observable market
data where it is available and rely as little as possible on entity’s specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is
included in Level 2. Instruments included in Level 2 comprise derivative assets, units of mutual fund and segregated funds contract liabilities - unit link.
If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3. Instruments included in Level 3 comprise of certain bonds.
Fair value of short term investments in securities shares that are traded in Indonesia Stock Exchange, bonds and units of mutual fund and segregated funds net assets - unit link based on
fair value, net asset value published was calculated by investment manager.
Fair value of loans, consumer financing receivables, finance lease, factoring receivables, and other receivables are determined based on discounted cash flow analysis using market interest
rate. There is no reliable basis for measuring the fair value of investment in shares Note 17, thus, the
investments in shares are stated at cost. Deposits and deposits from other banks have a demand feature, thus, the fair value is not less
than the amount payable on demand discounted from the first date that the amount could be required to be paid which is equal to the carrying amount.
The fair value of loan received and securities issued are determined based on discounted cash flow analysis using market interest rates.
Fair value of cash and cash equivalents, short-term investment in time deposits, placements with other banks, Bank Indonesia Intervention, export bill receivable, securities purchased under
agreements to resell, receivables from brokers, other assets security deposits, securities sold under agreement to repurchase, payables to brokers, accrued expenses, and other liabilities
approximates the carrying value due to short term nature of transactions.
53. Agreements and Engagements
a. On June 6, 2008, the Company entered into room leasing agreement with ASM,
a subsidiary, relating to lease at office building of Plaza Simas which is located at Jl. Fachrudin No. 20, Central Jakarta. The lease term is for 15 years, starting from
October 1, 2008 up to October 1, 2023 Note 50.
b. AJSM, a subsidiary, entered into cooperation agreements, wherein AJSM was appointed as
insurance agent with third parties. The third parties are PT Bank Commonwealth Indonesia, PT Bank Mayapada Tbk, PT Bank Permata Tbk, PT Bank Muamalat Indonesia, PT Bank
OCBC NISP Tbk, PT Bank Nusantara Parahyangan Tbk, PT Bank Windu Kentjana International Tbk, PT Bank BCA Syariah, BS, PT Bank Kesawan Tbk, PT Bank Syariah
Mandiri, PT Bank UOB Buana Tbk, PT Bank Mega Tbk, PT ICB Bumiputera Indonesia Tbk, PT Bank International Indonesia Tbk, PT Bank Mutiara Tbk, PT Bank Victoria International
Tbk, Bank of China Limited and some rural banks.
c. SMF, a subsidiary, has entered into a Joint Financing Agreement by transferring
Receivables Portfolio and Appointment as Security Agent and Chanelling Credit Transfer Agreement with BS Note 11.
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PT SINAR MAS MULTIARTHA Tbk AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements
For the Years Ended December 31, 2014 and 2013 Figures are Presented in Millions of Rupiah,unless Otherwise Stated
d.
ABSM, a subsidiary, entered into certain lease agreements operating lease with BS, a subsidiary, on motor vehicles and office equipment owned by ABSM with lease period for 1
year.
54. Commitments and Contingencies
a. BS, a subsidiary, has commitments on purchases and sales of foreign currency Spot and
Forward which have not yet been realized as of December 31, 2014 and 2013. Details are as follows:
2014 2013
Spot and forward contracts to purchase foreign currencies
U.S Dollar 92,888
121,700 Japan Yen
- 36,423
Total 92,888
158,123
Spot and forward contracts to sell foreign currencies
U.S Dollar 92,888
109,530 Singapore Dollar
609 -
Australian Dollar 304
- Japan Yen
- 36,347
Euro -
5,028 Total
93,801 150,905
The above spot and forward transactions are normally settled in 1 day to 3 days, 3 days to 103 days, and 5 days to 71 days, respectively.
b. BS has commitments and contingent receivables and liabilities under export-import,
guarantees and loans given to the customers as follows:
2014 2013
Commitments Commitment liabilities
Unused loan commitments granted to customers
486,114 265,516
Irrevocable Letters of Credit 17,823
67,942 Total
503,937 333,458
Contingencies Contingent receivables
Past due interest revenues 76,770
27,934 Contingent liabilities
Bank guarantees issued 1,049,744
921,253 Net
972,974 893,319
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